THE FUTURE OF

FINANCE:
3 BANKING TRENDS
TO WATCH

Ms. Aiza L. Balballego

 3 BANKING TRENDS TO WATCH

1. THE RISE OF CRYPTOCURRENCY

AND THE PREVALENCE OF BLOCKCHAIN
2. ARTIFICIAL INTELLIGENCE IS ON
THE RISE
3. CHANGING CONSUMER
BEHAVIOR LEADS TO A CHANGING
BRANCH NETWORK
 1. T H E R I S E O F C RY P TO C U R R E N C Y A N D T H E
P R E VA L E N C E O F B L O C K C H A I N

- One of the most important features of cryptocurrencies is that they

rely on a technology called blockchain. 

- In a very general sense, blockchain is a technology that relies on a

global network to jointly manage a shared database that records
transactions on a public ledger. 

It's renowned for its security, as you'd have to break into each and
every computer to have access to the data.

This Photo by Unknown author is licensed under CC BY-NC.

 WHAT DO CRYPTOCURRENCIES AND
BLOCKCHAIN MEAN FOR BANKS?

• For many financial institutions, lending is still

a paper-intensive process.
• Blockchain's digital ledger has the potential to
make this process much more secure.
• Blockchain may even make the process of
lending faster and cheaper, in addition to
being more secure.
This Photo by Unknown author is licensed under CC BY-NC.
 2. ARTIFICIAL INTELLIGENCE IS ON THE RISE

• Artificial Intelligence, or AI, technology is on the rise. In fact,

some experts estimate that by 2020, we will see a computer with
the same processing power as the human brain.
• Financial institutions are figuring out how they can use artificial
intelligence to “decrease costs, enhance revenue, reduce fraud and
improve the customer experience.” 
• AI and other analysis-heavy advances like deep learning and
predictive analytics will have a big impact on financial
institutions in the years to come.

This Photo by Unknown author is licensed under CC BY.

This Photo by Unknown author is licensed under CC BY-SA.

This Photo by Unknown author is licensed under CC BY-SA-NC. This Photo by Unknown author is licensed under CC BY-SA.

AI CAN BE BROKEN INTO THREE MAIN TYPES:

• Cognitive automation
• Cognitive engagement
• Cognitive insights
 HOW CAN ARTIFICI AL INTELLIGENCE IMPACT
FINANCIAL INSTITUTI ONS?

Compliance 
• AI is used in compliance primarily in investments management and banking,
because of the volume of data and transactions. 
Sales 
• AI has the potential to improve the customer experience by analyzing the data
and providing better insights into consumer behavior. 
Management 
• Because AI has the potential to supplement and even replace certain human
functions, the technology and automation may result in reduced costs. 
Operations 
• JPMorgan is using AI to analyze legal documents and identify the most
important details and clauses with their recently adopted COiN technology.
This Photo by Unknown author is licensed under CC BY-NC.
 3 . C H A N G I N G C O N SU M E R B E H AV IO R L E A D S TO A
CHANGING BRANCH NETWORK

• Customer behavior in all industries, including banking,

is radically different than it was 5-10 years ago. 
• With the surge in mobile banking over the past few
years, the idea that “more banks = higher profitability”
no longer accurate. The bank branch is no longer the
only, or even the primary, way that customers can
interact with their bank. This is particularly true of
millennial customers.
This Photo by Unknown author is licensed under CC BY-SA.
 H O W A B E TT E R B R A N C H A N D AT M N E T W O RK C A N
LE A D TO G R O W TH

• Replacing older ATMs with on deposit-taking ATMs in strategic

locations.
• Investing in online and mobile banking that really meets their
customers' needs.
• Assessing the location of their branches, to determine if any can
be closed without negatively impacting their CRA or Fair Lending
performance.
• Identifying locations for new branches that will attract customers
of all demographics, and serve the unique needs of the
community.
• Evaluating ways to save money and reduce risk throughout their
branch network through branch relocations, downsizing, and
strategic renovations. This Photo by Unknown author is licensed under CC BY-NC-ND.
 A N K
TH U !
YO